I find it somewhat puzzling that the market would respond so positively to the reduction in Japanese rates to below zero. It is certainly not an indication that things are improving there or anywhere else for that matter. Ultimately, I think market action simply reflects an oversold condition and short covering. My model did not change in any significant way last week. Earnings indicator #1 is still negative and earnings indicator #2 is still neutral but it is now very close to going negative as well. Sentiment moved just slightly less bullish as the market rebounded. Valuation remains neutral. Market internals generally remain in a negative trend. I think it will be important to watch how the broad market does compared to the major averages in order to get a clue as to when this bounce will end. Momentum may carry the market a little higher but I expect new lows.